The Foreign Subsidies Regulation (FSR) empowers the European Commission (Commission) to investigate subsidies granted by non-EU countries where they may distort competition in the internal market. That enforcement effort entered a new phase on 31 July 2026, when the Commission launched its first formal obstruction proceedings under the FSR against the companies behind e-commerce platform Temu, for allegedly failing to cooperate with an unannounced inspection (dawn raid). For any business that may face an FSR inspection, the message is clear: ensure that your dawn-raid protocols and compliance procedures also cover the FSR, as the Commission applies the same strict approach to non-cooperation as it does under traditional competition law.
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Aug